Taxing Matters October 2019

Taxing Matters October 2019 is a summary of the latest tax and business changes, updates and news. The Ministry of Foreign Affairs and Trade provides assistance and resources for businesses who are looking to do business with other countries. One of their useful resources is a tariff-finder tool, which allows you to compare and assess

2019-10-21T11:23:19+12:00October 21st, 2019|Tax|

No More Cheques For IRD

From 1st March 2020 the IRD will no longer accept cheques. Although payment by cheque is becoming less and less frequent, there are still customers who make payments by cheque who will need to switch to another payment method by that date. The IRD has several alternative payment options to choose from: Direct debit and

2019-10-21T10:41:52+12:00October 21st, 2019|Tax|

Resident Withholding Tax

We explain what resident withholding tax is, who it applies to, rates and rules for making payments. What Is Resident Withholding Tax? Resident withholding tax (RWT) is: The initial tax you pay on interest and dividends you earn from your New Zealand bank accounts and investments; Whereas the initial tax you pay on income from

2019-09-30T11:04:24+12:00September 30th, 2019|Tax|

Taxing Matters: August 2019

Tax Changes August 2019 is a summary of the latest tax and business changes, updates and news. You will be aware that IRD are now automatically calculating income tax returns, and by now most people will have been informed that they have been assessed and either have tax to pay or are due a refund.

2019-08-19T14:24:37+12:00August 19th, 2019|Tax|

New Insulation Standards: Is The Cost Tax Deductible?

On 1st July 2019 the government introduced minimum insulation, heating and ventilation standards under the Residential Tenancies Act 1986. These standards include the requirement that ceiling and underfloor insulation must be installed in rental homes where it is reasonably practicable. As we explained in our previous article “Rental Properties: Which Expenses Can You Claim?” a

2019-08-14T11:13:27+12:00August 14th, 2019|Property Accounting, Tax|

Voluntary IRD Disclosures

If you have noticed an error in your tax returns, for example omitted some income or incorrectly claimed some expenses, you can make a voluntary disclosure to the IRD. Voluntary disclosure is where a tax payer becomes aware of an error in their taxes and tells the IRD before they find out in some other

2019-08-07T11:36:52+12:00August 7th, 2019|Tax|

Which Client Entertainment Expenses Are Tax Deductible?

It’s common for businesses to spend money on entertaining customers as a way of showing appreciation for their custom and encouraging loyalty. However, deciphering whether client entertainment expenses are non-deductible, 50% tax deductible or 100% tax deductible in line with the IRD’s rules can be a real challenge. From the IRD’s perspective, the types of

2019-08-01T10:52:16+12:00August 1st, 2019|Tax|

GST: The Second-hand Goods Credit

A GST-registered person who purchases “second-hand goods” in the course of a taxable activity may be able to deduct a proportion of the purchase price as input tax. A deduction may only be made if: The goods are purchased for making taxable supplies; The goods are in New Zealand; The supply is a non-taxable supply,

2019-07-02T16:08:25+12:00July 2nd, 2019|Tax|

Taxing Matters: June/July 2019

A summary of the latest tax and business news and updates. From 1st January 2020, the IRD will require most people who buy and sell properties to supply their IRD numbers on land transfer documentation. Currently, IRD numbers are not required for main home property transfers because in most cases there are no tax obligations

2019-07-03T08:59:00+12:00July 2nd, 2019|Tax|

Non-Deductible Expenses

While many expenses incurred in the course of doing business can be claimed to reduce your income tax, certain expenses are not deductible for tax purposes. These include: Late filing and late payment penalties imposed by the IRD. Costs related to breaking the law, such as speeding tickets or parking fines. Insurance premiums relating to

2019-07-02T10:05:40+12:00July 2nd, 2019|Tax|